Ensuring profitability on projects for Cape PLC

Cape PLC is an international leader in the provision of essential non-mechanical industrial services focussed on the energy and natural resources sectors

SITUATION

Cape’s Industrial Services division identified a need prior to commencement of the project to address material shortfalls and expensive additional shipping costs to site. The margins on the project were such that any additional costs caused by under or over ordering, and the delays this causes would have serious consequences to the profit.

Whilst Cape had an incumbent software supplier, going forward, they required a partner who had extensive experience in the Oil and Gas industry, were UK based for ease of implementation and ongoing support, and could deliver a solution that met their requirements on time and on budget.

They were also looking for any investment in software not to be lost at the end of the project. The licences and knowledge acquired needed to be reinvested in future projects to deliver a significant return on investment.

SOLUTION

Material Advantage is an integrated project procurement and materials management software system that delivers an immediate return. It ensures that what is designed is what is procured, and delivered when needed.

KoreSupport quickly established themselves as a provider who could meet Cape’s qualifying criteria; their proven track record and established software underpinning their selection. After a Needs Analysis and Scoping meeting, KoreSupport proved they understood Cape’s requirements both on site in Algeria and at the Head Office in the UK, by demonstrating Cape workflows controlled through Material Advantage.

RESULTS

A 10 user implementation was undertaken in October 2010, which included integration points to Cape’s existing Design and Accounting workflows, and the creation of a new Fabrication Module. The system was delivered and started live operation January 2011 on the Arzew Project.

Cape are now controlling all material ‘Bill of Materials’, Requisitions, Purchase Orders, Expediting, Goods Received, Work Planning, Fabrication and Issues through Material Advantage with the confidence they have full visibility of the project from design to completion. A solid foundation has been established for future projects, with integration points with Cape’s existing systems meaning that human error has been removed from disjointed workflows. There is scope for further benefits to be realised in the future with Material Advantages inherent scalability.

The investment Cape has made will be realised not only on this project but on other projects around the globe as the plan is to expand the use of the software throughout the group.

Cape Plc System Manager for CIS, Mediterranean and North Africa Region Gerald Green said “We feel that by bringing Material Advantage on board we are targeting any possible material control issues related to the large scale of our projects and the need of a rapid response to supply materials on site.”